In a significant development in the UK’s cryptocurrency landscape, authorities recently apprehended two individuals linked to a suspected illicit digital currency exchange transactionwhich would involve more than £1 billion.
The move highlights continued efforts by regulators to crack down on unregulated financial activities in the crypto sector.
Arrests made in billion-pound cryptocurrency laundering operation
The arrests, made by the Financial Conduct Authority (FCA) in conjunction with London Police, targeted a 38-year-old man and a 44-year-old man, who have since been released on bail pending further investigations.
The crackdown came amid growing vigilance against money laundering activities through digital currencies. The FCA’s executive director of enforcement and market supervision, Therese Chambers, highlighted the agency’s commitment to removing “dirty money” from the UK’s financial ecosystem.
During the operation, authorities raided two London properties and seized several devices as part of the evidence-gathering process.
As Bloomberg reports, under UK financial law, all crypto-related businesses must register with the FCA and adhere to strict anti-money laundering (AML) regulations.
Additionally, the recent actions reflect a broader initiative to strengthen oversight of cryptocurrency exchanges and related services, which are under increased scrutiny due to their potential misuse for financial crimes.
Regulatory pressure in the UK increases amid increased crypto oversight
Speaking of the UK regulator’s crackdown, Binance, the world’s largest digital currency exchange, is still grappling with its legal saga with these regulators.
Just recently, the crypto exchange revealed that it was attempt to dismiss large part of £10bn London lawsuitwhere it is accused alongside other platforms of removing Bitcoin Satoshi Vision (BSV) from their lists.
The case, which represents more than 200,000 BSV owners, claims that exchanges participated in anti-competitive actions that significantly devalued the digital currency, potentially costing up to £9 billion in losses.
Binance has challenged specific aspects of the lawsuit, but not its overall admission into the UK class action framework.
Meanwhile, UK regulators improve their control over digital asset operations. The government recently intends to enact new regulations on digital currency within six months, covering various activities from foreign exchange operations to custody services.
The economic secretary highlighted that this new framework would place many crypto asset activities under regulatory oversight for the first time.
Additionally, the UK’s Financial Conduct Authority (FCA) is preparing to launch a consultation on a licensing regime for digital asset companies and is considering equivalence measures for international companies.
This regulatory momentum is underlined by the FCA’s recent decision approval of first set of crypto exchange-traded products (ETPs)an important step in the integration of digital assets into the UK’s financial infrastructure.
Featured image created with DALL-E, chart from TradingView
